The rupee failed to maintain initial gains by slipping 10 paise to 55.38 against the American currency in the late morning trade on fresh dollar demand from banks and importers.

The rupee resumed higher at 55.25 a dollar against last weekend’s level of 55.28 at the Interbank Foreign Exchange (Forex) market on selling of dollars by banks on the back of lower dollar in overseas market.

However, it failed to maintain initial gains and dropped to 55.41 before quoting at 55.38 per dollar at 1030 hrs. It hovered in a range of 55.23 and 55.41 during the morning deals.

In the New York market, the US dollar fell against most major currencies on last Friday after China released weaker-than-expected trade data.

China’s trade surplus unexpectedly narrowed in July as exports barely grew from the year earlier month and imports increased at a smaller rate.

Meanwhile, the Sensex resumed lower at 17,551.69 and moved in a range of 17,531.10 and 17,594.55, before quoting at 17,577.98 at 1040hrs, a net gain of 20.24 points, or 0.12 per cent.